New York City allocated approximately $81,000 per person for homeless services last year, totaling a significant $368 million, according to a recent report from the state comptroller. The report revealed that spending on the Department of Homeless Services’ Street Homeless Solutions division had more than tripled over the past six years, rising from $102 million in 2019.
In 2019, the city was spending about $28,000 per "unsheltered homeless person," referring to individuals living regularly on the streets rather than in affordable housing or long-term shelter systems. During the same period, the unsheltered homeless population in the city increased by 26%.
State Comptroller Thomas P. DiNapoli emphasized the importance of understanding where resources are allocated and which services are effective, given the escalating spending prompted by the rise in the unsheltered population. The report projected that spending on services for unsheltered homeless individuals would reach around $456 million by the 2026 fiscal year.
The increase in costs primarily stemmed from investments in "low-barrier beds," which are easily accessible overnight shelters designed to cater to individuals hesitant to engage with the shelter system. The city's overall homeless population now stands at approximately 140,000, marking a nearly 78% increase since 2019, with 97% of the homeless population having access to some form of shelter.
Mayor Zohran Mamdani, who recently took office, has initiated significant spending on addressing homelessness in the city. His administration secured a three-year $1.86 billion contract with city hotels to serve as homeless housing, similar to a previous approach utilized by former Mayor Eric Adams.
While initially indicating a shift away from homeless encampment sweeps, Mayor Mamdani reversed course in February following fatalities due to extreme weather conditions, reinstating the measures with a commitment to improving outcomes and involving city Department of Homeless Services workers in the process.
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